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In a statement made by New York Attorney General Letitia James, it was announced that cryptocurrency companies Gemini, Genesis and its affiliates and DCG were sued for defrauding investors.

In the statement, it was noted that these companies defrauded more than 230 thousand investors of more than 1 billion dollars.

In an investigation by the Attorney General's Office, it was revealed that Gemini lied to investors about the investment program called "Gemini Earn" that Gemini ran with Genesis, and Gemini repeatedly assured investors that investing in Genesis through the "Gemini Earn" program was a low-risk investment.

The statement said the attorney general's investigation found that Gemini's internal analysis of Genesis showed that the company's financial statements were risky.

Gemini failed to disclose to investors that Genesis' loans were inadequately collateralized and that at one point Sam Bankman-Fried, founder and former Chief Executive Officer (CEO) of the cryptocurrency exchange FTX, was concentrated in the hedge fund Alameda, the statement said, adding that thousands of investors lost millions of dollars as a result of these "deceptions".

"This fraud is another example of bad actors harming the poorly regulated cryptocurrency industry," said Attorney General James.

Stating that the cryptocurrency companies in question tried to hide more than $ 1 billion in losses by lying to investors and that it was middle-class investors who suffered as a result, James emphasized that efforts will continue to make stronger regulations to stop deceptive cryptocurrency companies and protect all investors.